Tax estimate: Saxony still under pressure to save money

Saxony is still under pressure to make savings in view of meagre tax estimates. The Free State must expect less tax revenue in the coming years than was expected in May, the Ministry of Finance announced. Only in the current year 2025 would they be higher than previously forecast - by as much as 410 million euros. In 2027 and 2028, however, the total is expected to be around 50 million less than previously thought.

"Despite the pleasing increase in tax revenue this year, the pressure to consolidate the state budget in the coming years will not decrease, but rather increase. We must continue to step up our savings efforts in order to bring the expected revenue in line with expenditure," said Finance Minister Christian Piwarz (CDU).

Lower than expected municipal tax revenue in 2025 and 2026

According to the October tax estimate, the Saxon budget can expect total tax revenue of 20.1 and 20.3 billion euros in 2025 and 2026 respectively. Municipalities are expected to receive revenues of 4.9 billion euros and 5.2 billion euros - a total of 38 million euros less than expected in May. In the years from 2027 onwards, however, they are expected to be higher than last assumed.

"The measures taken by the federal government to increase investment are also having an impact on the tax estimate. However, the improved growth expectations do not come for free," explained Piwarz. A rapid strengthening of competitiveness is urgently needed in order to secure future prosperity in Germany. Demographic change and structural change in industry would not let the trees grow into the sky.